New York Scholarship Opt-In Could Shift to Regents

Families who could receive federal tax-credit scholarship money in New York would depend on whether the state opts in, a choice this bill would move to the Board of Regents.

Updated on Nov. 9, 2026 in Financial Aid

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Should New York governors alone decide whether the state joins federal private school tuition tax credits?

State Sen. John Liu plans to introduce a bill that would take away New York governors' power to opt the state into a federal tax credit scholarship program, shifting that decision to the 17-member Board of Regents. The bill would not block scholarship funding in 2027, the program's first year.

Why it matters

Whether New York participates determines whether families can receive scholarship money funded through a federal tax credit, which can help pay for private school tuition or tutoring. Gov. Kathy Hochul opted New York in last month, and the bill would change who makes that call going forward.

Taxpayers can redirect up to $1,700 of their tax bill to scholarship-granting organizations starting Jan. 1, with a full federal rebate. The bill would give the 17-member Board of Regents authority over New York's participation, and states must decide whether to opt in annually.

The players

John Liu

New York state senator who plans to introduce the bill to shift opt-in authority to the Board of Regents.

Kathy Hochul

Governor of New York who opted the state into the federal tax credit scholarship program last month and argued it is essentially free money from the federal government.

Board of Regents

17-member New York body, chosen by state lawmakers, that would gain authority to decide the state's participation in the program under the bill.

The details

The federal tax credit scholarship program is part of the One Big Beautiful Bill Act signed by President Donald Trump. Under the program, taxpayers redirect part of their tax bill to scholarship-granting organizations, which then give money to qualifying families through tuition scholarships or funding for tutoring and other services. Because states must opt in each year, the choice of who decides carries real weight for families who would receive the money. Liu's bill would move that decision from the governor to the Board of Regents, whose members are chosen by state lawmakers.

2027: First year of the federal tax credit scholarship program; the bill would not prevent students from receiving scholarship money that year.
Jan. 1, 2027: Taxpayers can begin redirecting up to $1,700 of their tax bill to scholarship-granting organizations.
2028: The bill would give the Board of Regents the opt-in decision for 2028 and beyond.

Education Landscape

The federal tax credit scholarship program created under the One Big Beautiful Bill Act makes state participation a recurring political decision, with states opting in or out each year. Rhode Island now requires legislative signoff for its own opt-in, while Kentucky, North Carolina, and Kansas had Republican lawmakers override Democratic governors' vetoes to join.

If you are considering a scholarship-granting organization for tuition or tutoring support, the timing matters: the program begins Jan. 1, 2027, and participation depends on the state's annual opt-in decision. Families with questions about eligibility or how a scholarship would affect their aid should raise them with the school's financial-aid office or another qualified adviser.

The takeaway

Whether New York takes part in this federal scholarship program may soon depend on the Board of Regents rather than the governor, so it is worth tracking the bill as it moves forward. Families interested in scholarship options should confirm the state's participation status before making plans that depend on the funding.